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Jul 31
China's third central automaker revs up EV-chip cluster in Chongqing

As China moves to curb domestic EV overcompetition and prioritize industrial upgrading, China Changan Automobile Group (CCAG) officially launched in Chongqing on July 27. The restructuring makes CCAG the third centrally owned automaker in the country, alongside FAW Group and Dongfeng Motor Corporation.

ASE Holdings posted solid growth in advanced packaging and testing in the first half of 2025, fueled by robust demand for AI-related high-performance computing (HPC) chips. However, a strong New Taiwan Dollar dented second-quarter profitability.
China's government has recently imposed a series of export and overseas technology-transfer restrictions targeting lithium iron phosphate (LFP) cathode materials. Notably absent from the restrictions are ternary battery materials—a decision that has prompted speculation across the battery industry.
Japanese utility firm Kyushu Electric Power has entered a strategic partnership with Taiwan-based ProLogium to jointly develop superfluid inorganic all-solid-state lithium battery 24V modules.
Japan and the EU have each reached tariff agreements with the US, covering the car, energy, and IT sectors. While the period of low tariffs has ceased to exist, it is still early to say that the US auto industry has achieved a decisive victory.
China's auto and parts industries have historically been entangled in cutthroat price wars. Even with Chinese authorities repeatedly calling for an end to the involution, no improvement has been seen. Taiwanese firms with production bases in China bluntly report the futile nature of the situation.
Murata released its financial results for the second quarter of 2025, reporting consolidated operating profit of JPY61.6 billion (US$414.5 million), down 7.2% year-over-year; net profit was JPY49.7 billion, a decrease of 25% year-over-year. Although these figures exceeded market expectations, net profit declined for the first time in nearly two years due to yen appreciation and intense competition from Chinese manufacturers in the smartphone electronic components market.
LG Energy Solution (LGES) has signed a lithium iron phosphate (LFP) battery supply deal worth KRW5.94 trillion (approx. US$4.25 billion). Although the customer was not named due to a confidentiality clause, industry sources widely identify Tesla as the likely buyer.
Samsung's major AI chip contract with Tesla has sparked heated discussions, with Elon Musk pledging to personally step in to help Samsung improve production efficiency while hinting at an even higher contract value.
Hyundai Motor Group Executive Chair Chung Eui-sun will visit Washington on July 30 to back South Korea's final-stage trade negotiations with the US, joining Samsung Chairman Lee Jae-yong and Hanwha Vice Chair Dong-kwan (DK) Kim in lobbying efforts. The talks aim to reduce the 25% US import tariff on cars, a key issue for Korean automakers seeking to maintain price competitiveness.
At MediaTek's earnings call, aside from presenting their outlook for the third quarter, the Q&A session demonstrated that the market is most interested in the company's three core strategies, (1) the development of the ASIC business, (2) the performance and growth timing of automotive chips, and (3) the progress of developing 2nm chips.
Samsung Electronics Chairman Lee Jae-yong recently made a spontaneous trip to Washington, DC, to assist South Korea in ongoing reciprocal tariff negotiations with the US. As AI semiconductors emerge as a significant new bargaining tactic in the South Korea-US tariff discussions, Lee may be considering an additional investment in an advanced packaging production line in Taylor, Texas. However, in response to this speculation, Samsung representatives stated they are still reviewing various US investment options and have yet to reach any concrete decisions.